An Application of Fuzzy Set Theory to the Individual Investor Problem
نویسنده
چکیده
This study reviews the problem of the individual investor and applies to it a methodology based on fuzzy sets and the theory of possibility. The investment decision is characterized by uncertainty, imprecision and complexity, which lessen the eflectiveness of conventional calculus andprobability tools. In contrast, fuzzy set theory and its modeling language provide objects of analysis and algebra that are well suited to this problem. New concepts such as ‘fuzzy portfolio weights” are introduced. The result of our research is a qualitative, general, and practical model for individual investors’ decision making, which is based on Smith’s (1974) asset-mix model.
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تاریخ انتشار 2001